BlackRock’s iShare Bitcoin Trust (IBIT) registered its first daily net inflow in three weeks, heralding a shift in momentum for US spot Bitcoin exchange-traded funds (ETFs). With a combined net inflow of $12.8 million in the market, data from Farside Investors confirms a promising trend.
The foray into the Bitcoin ETF space by BlackRock, following approval from the US Securities and Exchange Commission (SEC) in January 2024, was a notable event. BlackRock, the world’s largest asset manager with an astounding $9 trillion in assets under management, brought a level of sophistication and institutional acceptance to the crypto ETF ecosystem, which was met with much enthusiasm by investors.
Yesterday, BlackRock’s regulated financial product saw a remarkable $15.8 million in daily net inflows, the first since August 26, 2024. This influx was strong enough to push the broader US spot Bitcoin ETF market into positive territory. Over the past three weeks, IBIT experienced 11 days of zero flows and two days—August 29 and September 9—with net daily outflows of $13.5 million and $9.1 million, respectively.
While IBIT surged ahead, Grayscale’s GBTC product saw a net daily outflow of $20.8 million. In contrast, Fidelity’s FBTC, Franklin Templeton’s EZBC, and VanEck’s HODL products enjoyed net daily inflows of $5.1 million, $5 million, and $4.9 million, respectively.
According to cryptocurrency ETF tracker SoSoValue, BlackRock’s IBIT stands at the forefront of US-based spot Bitcoin ETFs with a cumulative net inflow of $20.9 billion since its inception earlier this year. Following this, FBTC has $10.1 billion, Ark and 21Shares’ ARKB has $2.6 billion, and Bitwise’s BITB has $2.2 billion. In stark contrast, Grayscale’s GBTC has suffered a cumulative net outflow of $20 billion, which analysts attribute to its hefty 1.5% fee, a significant drawback when compared to IBIT’s more competitive 0.21% fee.
While spot Bitcoin ETFs recorded a promising net inflow, spot Ethereum ETFs painted a different picture. They experienced a combined net outflow of $9.4 million. Mimicking its Bitcoin counterpart, Grayscale’s Ethereum ETF (ETHE) saw a net daily outflow of $13.8 million, and Bitwise’s ETHW followed with a $2.1 million net outflow. Only Grayscale’s mini Ethereum ETF (ETH) attracted a modest net inflow of $2.3 million.
Since their approval in May 2024, Ethereum ETFs have struggled to match the success of Bitcoin ETFs in drawing significant inflows. This lukewarm performance is mirrored in Ethereum’s price, which continues to trail behind Bitcoin. At press time, Ethereum is trading at $2,307, reflecting a slight increase of 0.6% in the past 24 hours.
